German factory orders are the highlight of the economic calendar, along with European retail sales numbers. UBS reports earnings.
In currencies, there is talk that speculators who have been heavily long dollars are paring back and maybe even preparing for the dollar’s much-anticipated fall alongside U.S. rates.
However in price terms, the greenback has so far turned only to meandering rather than outright dropping. Indeed, it continued to rise for a second straight session on the yen, even as the spectre of official intervention hangs over the currency.
Australia’s central bank left interest rates on hold, as expected, though it said the inflation rate remains high and is falling slower than expected.
Large flows from mainland China into Hong Kong’s equity market have put downward pressure on the yuan. While the Hang Seng was set to snap a 10-day winning streak on Tuesday with a modest drop, it is nearly 15% above last month’s lows.
The MSCI Asia ex-Japan index hit a 15-month high.
